Western Digital Q4 Earnings Beat Estimates, Revenues Miss

The hard drive maker generated $488 million during the fourth fiscal quarter, ending with total cash and cash equivalents of $5 billion.

IRVINE, Calif. – Western Digital Corp. (NASDAQ: WDC) on Thursday (July 30) reported better-than-expected fourth-quarter fiscal 2015 earnings.

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The company posted non-GAAP earnings per share of $1.51, which surpassed the Zacks Consensus Estimate of $1.46. However, earnings were down from $1.85 per share reported in the year-ago quarter and were at the lower end of the management’s guidance range of $1.50 and $1.60 per share.

During the quarter, Western Digital shipped 48.5 million hard drives at an average selling price (ASP) of $60. ASP for the quarter was down from $61 in the previous quarter but was up from $56 in the year-ago quarter. However, reported shipments were down from 63.1 million in the year-ago quarter and 54.5 million in the previous quarter, according to Zacks.

For the 2015 fiscal year, the company reported revenue of $14.6 billion and net income of $1.5 billion, or $6.18 per share, compared to fiscal year 2014 revenue of $15.1 billion and net income of $1.6 billion, or $6.68 per share. On a non-GAAP basis, fiscal year 2015 net income was $1.8 billion, or $7.76 per share, compared to fiscal year 2014 net income of $2.0 billion, or $8.10 per share. The company generated $2.2 billion in cash from operations during the 2015 fiscal year and it utilized $1.4 billion for dividends and share repurchases.

“I am satisfied with our execution and performance in the fourth fiscal quarter in light of the weak PC market,” Steve Milligan, WD’s president and CEO, said in a press release. “Our financial performance reflects our strong product and technology positioning coupled with solid execution. We remain positive about the opportunity to create long term value in the evolving storage ecosystem.”

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